1.1                          A bill for an act 
  1.2             relating to education; providing for technical and 
  1.3             other changes to kindergarten through grade 12 
  1.4             education provisions; amending Minnesota Statutes 
  1.5             1998, sections 120B.11, subdivision 5; 121A.25, 
  1.6             subdivision 1; 123A.22, subdivisions 6 and 7; 123A.27; 
  1.7             123A.48, subdivision 19; 123A.485, subdivision 1; 
  1.8             123B.14, subdivision 5; 123B.31; 123B.70, subdivision 
  1.9             1; 123B.86, subdivision 1; 123B.88, subdivisions 1, 
  1.10            13, and 22; 123B.95, subdivision 2; 124D.11, 
  1.11            subdivision 5; 124D.114; 124D.21; 124D.38, subdivision 
  1.12            9; 124D.40; 124D.41; 124D.42, subdivisions 4, 6, and 
  1.13            7; 124D.43; 124D.45, subdivisions 1 and 2; 124D.454, 
  1.14            subdivision 8; 124D.53, subdivision 2; 124D.61; 
  1.15            124D.81, subdivision 1; 124D.83, subdivision 2; 
  1.16            124D.895; 124D.896; 126C.14; 126C.16, subdivisions 1 
  1.17            and 2; 126C.22, subdivision 4; 126C.41, subdivision 1; 
  1.18            126C.48, subdivisions 2 and 5; and 127A.41, 
  1.19            subdivision 1; Minnesota Statutes 1999 Supplement 
  1.20            sections 125A.79, subdivision 1; 126C.10, subdivision 
  1.21            9; 126C.15, subdivision 3; 126C.44; and 127A.45, 
  1.22            subdivision 13; Laws 1998, chapter 398, article 5, 
  1.23            section 50, subdivision 1; proposing coding for new 
  1.24            law in Minnesota Statutes, chapter 120A; repealing 
  1.25            Minnesota Statutes 1998, sections 124D.128, 
  1.26            subdivision 4; 124D.38, subdivision 10; and 124D.45, 
  1.27            subdivision 3; Laws 1995, First Special Session 
  1.28            chapter 3, article 5, section 9; Laws 1997, chapter 
  1.29            192, section 19. 
  1.30  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.31     Section 1.  [120A.02] [DEPARTMENT OF CHILDREN, FAMILIES, 
  1.32  AND LEARNING.] 
  1.33     The department of children, families, and learning shall 
  1.34  carry out the provisions of chapters 120A to 129C and other 
  1.35  related education provisions under law. 
  1.36     Sec. 2.  Minnesota Statutes 1998, section 120B.11, 
  1.37  subdivision 5, is amended to read: 
  2.1      Subd. 5.  [REPORT.] (a) By October 1 of each year, the 
  2.2   school board shall use standard statewide reporting procedures 
  2.3   the commissioner develops and adopt a report that includes the 
  2.4   following: 
  2.5      (1) student performance goals for meeting state graduation 
  2.6   standards adopted for that year; 
  2.7      (2) results of local assessment data, and any additional 
  2.8   test data; 
  2.9      (3) the annual school district improvement plans; 
  2.10     (4) information about district and learning site progress 
  2.11  in realizing previously adopted improvement plans; and 
  2.12     (5) the amount and type of revenue attributed to each 
  2.13  education site as defined in section 123B.04, subdivision 2. 
  2.14     (b) The school board shall publish the report in the local 
  2.15  newspaper with the largest circulation in the district or by 
  2.16  mail.  The board shall make a copy of the report available to 
  2.17  the public for inspection.  The board shall send a copy of the 
  2.18  report to the commissioner of children, families, and learning 
  2.19  by October 15 of each year. 
  2.20     (c) The title of the report shall contain the name and 
  2.21  number of the school district and read "Annual Report on 
  2.22  Curriculum, Instruction, and Student Performance."  The report 
  2.23  must include at least the following information about advisory 
  2.24  committee membership: 
  2.25     (1) the name of each committee member and the date when 
  2.26  that member's term expires; 
  2.27     (2) the method and criteria the school board uses to select 
  2.28  committee members; and 
  2.29     (3) the date by which a community resident must apply to 
  2.30  next serve on the committee. 
  2.31     Sec. 3.  Minnesota Statutes 1998, section 121A.25, 
  2.32  subdivision 1, is amended to read: 
  2.33     Subdivision 1.  [APPLICABILITY.] The definitions in this 
  2.34  section apply to Laws 1987, chapter 295 sections 121A.26 to 
  2.35  121A.29 and 121A.61, subdivision 3. 
  2.36     Sec. 4.  Minnesota Statutes 1998, section 123A.22, 
  3.1   subdivision 6, is amended to read: 
  3.2      Subd. 6.  [COMMISSIONER APPROVAL.] Prior to the 
  3.3   commencement of the operation of any center Before a center 
  3.4   begins operation, the commissioner must approve the agreement 
  3.5   establishing the center entered into by participating districts 
  3.6   shall be approved by the commissioner. 
  3.7      Sec. 5.  Minnesota Statutes 1998, section 123A.22, 
  3.8   subdivision 7, is amended to read: 
  3.9      Subd. 7.  [LAWS GOVERNING INDEPENDENT SCHOOL DISTRICTS 
  3.10  APPLY.] As of the effective date of the creation of any center 
  3.11  as contained in the agreement establishing the center, the 
  3.12  organization, operation, maintenance, and conduct of the affairs 
  3.13  of the center shall be governed by the general laws relating to 
  3.14  independent school districts of the state unless provided 
  3.15  otherwise herein or by statute passed hereafter in statute. 
  3.16     Sec. 6.  Minnesota Statutes 1998, section 123A.27, is 
  3.17  amended to read: 
  3.18     123A.27 [RESERVED REVENUE FOR DISTRICT COOPERATION.] 
  3.19     A district that was a member of an intermediate school 
  3.20  district organized pursuant to chapter 136D on July 1, 1996, 
  3.21  must place a portion of its general education revenue in a 
  3.22  reserved account for instructional services from entities formed 
  3.23  for cooperative services for special education programs and 
  3.24  secondary vocational programs.  The amount reserved is equal to 
  3.25  the levy made according to Minnesota Statutes 1993 Supplement, 
  3.26  section 124.2727, subdivision 6, for taxes payable in 1994 
  3.27  divided by the actual pupil units in the intermediate school 
  3.28  district for fiscal year 1995 times the number of actual pupil 
  3.29  units in the school district in 1995.  The district must use 
  3.30  5/11 of the revenue for special education and 6/11 of the 
  3.31  revenue for secondary vocational education.  The district must 
  3.32  demonstrate that the revenue is being used to provide the full 
  3.33  range of special education and secondary vocational programs and 
  3.34  services available to each child served by the intermediate.  
  3.35  The secondary vocational programs and services must meet the 
  3.36  requirements established in an articulation agreement developed 
  4.1   between the state board of education and the board of trustees 
  4.2   of the Minnesota state colleges and universities. 
  4.3      A district that was a member of an education district 
  4.4   organized pursuant to section 123A.15 on July 1, 1999, must 
  4.5   place a portion of its general education revenue in a reserve 
  4.6   account for instructional services from entities formed for 
  4.7   cooperative services.  Services may include secondary vocational 
  4.8   programs, special education programs, staff development, and 
  4.9   gifted and talented instruction.  The amount reserved is equal 
  4.10  to $50 per pupil unit times the actual number of pupil units in 
  4.11  the district. 
  4.12     Sec. 7.  Minnesota Statutes 1998, section 123A.48, 
  4.13  subdivision 19, is amended to read: 
  4.14     Subd. 19.  [BONDS; ELECTION.] The board of the newly 
  4.15  created district, when constituted as provided in Minnesota 
  4.16  Statutes 1990, section 122.23, subdivision 17, may provide for 
  4.17  an election of that district on the issuance of bonds.  It may 
  4.18  issue and sell bonds authorized at the election, or bonds 
  4.19  authorized at an election previously held in any preexisting 
  4.20  district wholly included within the newly created district, or 
  4.21  bonds for a purpose for which an election is not required by 
  4.22  law.  The actions may be taken at any time after the date of the 
  4.23  county auditor's order issued under Minnesota Statutes 1990, 
  4.24  section 122.23, subdivision 17, and before or after the date 
  4.25  upon which the consolidation becomes effective for other 
  4.26  purposes, and taxes for the payment of the bonds shall be levied 
  4.27  upon all taxable property in the newly created district.  No 
  4.28  bonds shall be delivered to purchasers until 30 days after the 
  4.29  date of the county auditor's order.  If within this period a 
  4.30  notice of appeal from the county auditor's order to the district 
  4.31  court is filed in accordance with section 123A.49, no bonds 
  4.32  shall be delivered by the newly created district to purchasers 
  4.33  unless: 
  4.34     (1) the county auditor's order is affirmed by final order 
  4.35  of the district court in the special proceeding, and a period of 
  4.36  30 days from the service of the final order expires without an 
  5.1   appeal being commenced; or 
  5.2      (2) if an appeal is taken, the order is affirmed and the 
  5.3   time for petitioning for further review has expired.  
  5.4   Notwithstanding the pendency of the appeal, if all of the 
  5.5   territory of one and only one independent district maintaining a 
  5.6   secondary school is included in the newly created district, and 
  5.7   if the net tax capacity of taxable property in the territory 
  5.8   comprises 90 percent or more of the net tax capacity of all 
  5.9   taxable property in the newly created district, then the board 
  5.10  may issue, sell, and deliver any bonds voted by the preexisting 
  5.11  independent district and any bonds voted or otherwise authorized 
  5.12  by the newly created district, and the bonds must be paid by the 
  5.13  levy of taxes upon the property within the territory of the 
  5.14  preexisting independent district and within the other areas, if 
  5.15  any, that are finally determined to be properly included within 
  5.16  the newly created district.  In any election held in the newly 
  5.17  created district as authorized in the preceding sentence, all 
  5.18  qualified electors residing within the area of that district as 
  5.19  defined in the county auditor's order shall be entitled to vote, 
  5.20  but the votes cast by residents of former districts or portions 
  5.21  of former districts included in the area, other than the 
  5.22  independent district maintaining the secondary school, shall be 
  5.23  received and counted separately.  The bonds must not be issued 
  5.24  and sold unless authorized by a majority of the votes cast 
  5.25  thereon by electors of the independent district maintaining the 
  5.26  secondary school, and also by a majority of the votes cast 
  5.27  thereon by electors residing within the entire area of the newly 
  5.28  created district.  
  5.29     Sec. 8.  Minnesota Statutes 1998, section 123A.485, 
  5.30  subdivision 1, is amended to read: 
  5.31     Subdivision 1.  [ELIGIBILITY AND USE.] A district that has 
  5.32  been reorganized after June 30, 1994, under section 123A.48 is 
  5.33  eligible for consolidation transition revenue.  Revenue is equal 
  5.34  to the sum of aid under subdivision 2 and levy under subdivision 
  5.35  3.  Consolidation transition revenue may only be used according 
  5.36  to this section.  Revenue must be used for the following 
  6.1   purposes and may be distributed among these purposes at the 
  6.2   discretion of the district: 
  6.3      (1) to offer early retirement incentives as provided by 
  6.4   section 123A.48, subdivision 23; 
  6.5      (2) to reduce operating debt as defined in section 123B.82; 
  6.6      (3) to enhance learning opportunities for students in the 
  6.7   reorganized district; and 
  6.8      (4) for other costs incurred in the reorganization. 
  6.9      Revenue received and utilized under clause (3) or (4) may 
  6.10  be expended for operating, facilities, and/or equipment.  
  6.11  Revenue received under this section must not be included in the 
  6.12  determination of the reduction under section 124A.26, 
  6.13  subdivision 1.  
  6.14     Sec. 9.  Minnesota Statutes 1998, section 123B.14, 
  6.15  subdivision 5, is amended to read: 
  6.16     Subd. 5.  [INSUFFICIENT FUNDS.] In the event that valid 
  6.17  orders are presented to the treasurer for payment, and there are 
  6.18  insufficient funds on hand to pay them, the treasurer shall 
  6.19  receive, endorse and process them in accordance with section 
  6.20  124.06 123B.12. 
  6.21     Sec. 10.  Minnesota Statutes 1998, section 123B.31, is 
  6.22  amended to read: 
  6.23     123B.31 [LIMITATION OF SECTIONS.] 
  6.24     Material contained in sections 120B.09, 120B.14, 120B.35, 
  6.25  121A.21, 121A.24, 122A.44, 122A.69, 123A.22, 123A.24, 123B.02, 
  6.26  subdivisions 1 to 15 and 17 to 20, 123B.09, 123B.11, 123B.14, 
  6.27  123B.143, 123B.147, 123B.23, 123B.49, 123B.51, 123B.52, 123B.88, 
  6.28  124D.02, 124D.09, and 124D.51, unless expressly stated 
  6.29  otherwise, relates only to independent school districts. 
  6.30     Sec. 11.  Minnesota Statutes 1998, section 123B.70, 
  6.31  subdivision 1, is amended to read: 
  6.32     Subdivision 1.  [COMMISSIONER APPROVAL.] In determining 
  6.33  whether to give a school facility a positive, negative, or 
  6.34  unfavorable review and comment, the commissioner must evaluate 
  6.35  the proposals for facilities using the information provided 
  6.36  under section 123B.71, subdivision 9. 
  7.1      The commissioner may submit a negative review and comment 
  7.2   for a project if the district has not submitted its capital 
  7.3   facilities plan required under section 124.243, subdivision 1, 
  7.4   to the commissioner. 
  7.5      Sec. 12.  Minnesota Statutes 1998, section 123B.86, 
  7.6   subdivision 1, is amended to read: 
  7.7      Subdivision 1.  [GENERAL PROVISIONS.] A district shall 
  7.8   provide equal transportation within the district for all school 
  7.9   children to any school when transportation is deemed necessary 
  7.10  by the school board because of distance or traffic condition in 
  7.11  like manner and form as provided in sections 123B.88 and 124.223 
  7.12  123B.92, when applicable. 
  7.13     Sec. 13.  Minnesota Statutes 1998, section 123B.88, 
  7.14  subdivision 1, is amended to read: 
  7.15     Subdivision 1.  [PROVIDING TRANSPORTATION.] The board may 
  7.16  provide for the transportation of pupils to and from school and 
  7.17  for any other purpose.  The board may also provide for the 
  7.18  transportation of pupils to schools in other districts for 
  7.19  grades and departments not maintained in the district, including 
  7.20  high school, at the expense of the district, when funds are 
  7.21  available therefor and if agreeable to the district to which it 
  7.22  is proposed to transport the pupils, for the whole or a part of 
  7.23  the school year, as it may deem advisable, and subject to its 
  7.24  rules.  In any district, the board must arrange for the 
  7.25  attendance of all pupils living two miles or more from the 
  7.26  school, except pupils whose transportation privileges have been 
  7.27  voluntarily surrendered under subdivision 2, or whose privileges 
  7.28  have been revoked under section 123B.91, subdivision 1, clause 
  7.29  (6), or 123B.90, paragraph (b), or whose privileges have been 
  7.30  voluntarily surrendered under subdivision 1a subdivision 2.  The 
  7.31  district may provide for the transportation of or the boarding 
  7.32  and rooming of the pupils who may be more economically and 
  7.33  conveniently provided for by that means.  Arrangements for 
  7.34  attendance may include a requirement that parents or guardians 
  7.35  request transportation before it is provided.  The board must 
  7.36  provide transportation to and from the home of a child with a 
  8.1   disability not yet enrolled in kindergarten when special 
  8.2   instruction and services under sections 125A.03 to 125A.24, 
  8.3   125A.26 to 125A.48, and 125A.65 are provided in a location other 
  8.4   than in the child's home.  When transportation is provided, 
  8.5   scheduling of routes, establishment of the location of bus 
  8.6   stops, manner and method of transportation, control and 
  8.7   discipline of school children and any other matter relating 
  8.8   thereto must be within the sole discretion, control, and 
  8.9   management of the board.  The district may provide for the 
  8.10  transportation of pupils or expend a reasonable amount for room 
  8.11  and board of pupils whose attendance at school can more 
  8.12  economically and conveniently be provided for by that means or 
  8.13  who attend school in a building rented or leased by a district 
  8.14  within the confines of an adjacent district. 
  8.15     Sec. 14.  Minnesota Statutes 1998, section 123B.88, 
  8.16  subdivision 13, is amended to read: 
  8.17     Subd. 13.  [AREA LEARNING CENTER PUPILS.] Districts may 
  8.18  provide bus transportation along school bus routes established 
  8.19  to provide nonregular transportation as defined in section 
  8.20  123B.92, subdivision 1, paragraph (e)(2)(ii), when space is 
  8.21  available, for pupils attending programs at an area learning 
  8.22  center.  The transportation is only permitted between schools 
  8.23  and if it does not increase the district's expenditures for 
  8.24  transportation.  The cost of these services shall be considered 
  8.25  part of the authorized cost for nonregular transportation for 
  8.26  the purpose of section 123B.92. 
  8.27     Sec. 15.  Minnesota Statutes 1998, section 123B.88, 
  8.28  subdivision 22, is amended to read: 
  8.29     Subd. 22.  [POST-SECONDARY ENROLLMENT OPTIONS PUPILS.] 
  8.30  Districts may provide bus transportation along school bus routes 
  8.31  established to provide nonregular transportation as defined in 
  8.32  section 123B.92, subdivision 1, paragraph (c), clause (2), when 
  8.33  space is available, for pupils attending programs at a 
  8.34  post-secondary institution under the post-secondary enrollment 
  8.35  options program.  The transportation is permitted only if it 
  8.36  does not increase the district's expenditures for 
  9.1   transportation.  Fees collected for this service under section 
  9.2   123B.36, subdivision 1, paragraph (13), shall be subtracted from 
  9.3   the authorized cost for nonregular transportation for the 
  9.4   purpose of section 123B.92. 
  9.5      Sec. 16.  Minnesota Statutes 1998, section 123B.95, 
  9.6   subdivision 2, is amended to read: 
  9.7      Subd. 2.  [FINANCES.] The board must submit to the annual 
  9.8   meeting an estimate of the expenses of the district for the 
  9.9   coming year for a school term as determined by the board and for 
  9.10  such other specified purposes as the board may deem proper.  If 
  9.11  the annual meeting fails to vote a sufficient tax to maintain 
  9.12  the district for such time, the board must levy such tax 
  9.13  pursuant to and within the limitations of sections 124.226, 
  9.14  124D.22, 126C.40 to 126C.45, and 126C.48; but no board shall 
  9.15  expend any money or incur any liability for any purpose beyond 
  9.16  the sum appropriated by vote of the district for such purpose, 
  9.17  or levied by the board pursuant to this subdivision, or on hand 
  9.18  and applicable thereto. 
  9.19     Sec. 17.  Minnesota Statutes 1998, section 124D.11, 
  9.20  subdivision 5, is amended to read: 
  9.21     Subd. 5.  [SPECIAL EDUCATION AID.] Except as provided in 
  9.22  subdivision 2, paragraph (b), special education aid must be paid 
  9.23  to a charter school according to section 125A.76, as though it 
  9.24  were a school district.  The charter school may charge tuition 
  9.25  to the district of residence as provided in section 125A.11.  
  9.26  The charter school shall allocate its special education levy 
  9.27  equalization revenue to the resident districts of the pupils 
  9.28  attending the charter school.  The districts of residence shall 
  9.29  levy as though they were participating in a cooperative, as 
  9.30  provided in section 125A.77, subdivision 3. 
  9.31     Sec. 18.  Minnesota Statutes 1998, section 124D.114, is 
  9.32  amended to read: 
  9.33     124D.114 [LACTOSE REDUCED MILK.] 
  9.34     (a) If a nonpublic school or district receives school lunch 
  9.35  aid under section 124D.111 or participates in the school 
  9.36  breakfast program and receives a written request from the parent 
 10.1   of a pupil who is lactose intolerant, then the nonpublic school 
 10.2   or district must make available lactose reduced milk; milk 
 10.3   fortified with lactase in liquid, tablet, granular, or other 
 10.4   form; or milk to which lactobacillus acidophilus has been added 
 10.5   for the pupil.  
 10.6      (b) Notwithstanding any law, local ordinance, or local 
 10.7   regulation to the contrary, a school may pour or serve portions 
 10.8   of any product required by this section from a large container 
 10.9   of the product at the time and place the pupil is being served. 
 10.10     Sec. 19.  Minnesota Statutes 1998, section 124D.21, is 
 10.11  amended to read: 
 10.12     124D.21 [ADDITIONAL COMMUNITY EDUCATION REVENUE.] 
 10.13     (a) A district that is eligible under section 124D.20, 
 10.14  subdivision 2, may levy an amount up to the amount authorized by 
 10.15  Minnesota Statutes 1986, section 275.125, subdivision 8, clause 
 10.16  (2).  
 10.17     (b) Beginning with levies for fiscal year 1995, this levy 
 10.18  must be reduced each year by the amount of any increase in the 
 10.19  levying district's general community education revenue under 
 10.20  section 124D.20, subdivision 3, for that fiscal year over the 
 10.21  amount received by the district under Minnesota Statutes 1992, 
 10.22  section 124.2713, subdivision 3, for fiscal year 1994. 
 10.23     (c) The proceeds of the levy may be used for the purposes 
 10.24  set forth in section 124D.20, subdivision 8. 
 10.25     Sec. 20.  Minnesota Statutes 1998, section 124D.38, 
 10.26  subdivision 9, is amended to read: 
 10.27     Subd. 9.  [COMMISSION.] "Commission" means the Minnesota 
 10.28  commission on national and community service established in 
 10.29  section 121.703 124D.385. 
 10.30     Sec. 21.  Minnesota Statutes 1998, section 124D.40, is 
 10.31  amended to read: 
 10.32     124D.40 [YOUTH WORKS GRANTS.] 
 10.33     Subdivision 1.  [APPLICATION.] An eligible organization 
 10.34  interested in receiving a grant under sections 124D.39 to 
 10.35  124D.44 may prepare and submit to the commission, and beginning 
 10.36  January 1, 1997, the council, an application that complies with 
 11.1   section 124D.41. 
 11.2      Subd. 2.  [GRANT AUTHORITY.] The commission and, beginning 
 11.3   January 1, 1997, the council must use any state appropriation 
 11.4   and any available federal funds, including any grant received 
 11.5   under federal law, to award grants to establish programs for 
 11.6   youth works meeting the requirements of section 124D.41.  At 
 11.7   least one grant each must be available for a metropolitan 
 11.8   proposal, a rural proposal, and a statewide proposal.  If a 
 11.9   portion of the suburban metropolitan area is not included in the 
 11.10  metropolitan grant proposal, the statewide grant proposal must 
 11.11  incorporate at least one suburban metropolitan area.  In 
 11.12  awarding grants, the commission and, beginning January 1, 1997, 
 11.13  the council may select at least one residential proposal and one 
 11.14  nonresidential proposal, provided the proposals meet or exceed 
 11.15  the criteria in section 124D.41. 
 11.16     Sec. 22.  Minnesota Statutes 1998, section 124D.41, is 
 11.17  amended to read: 
 11.18     124D.41 [GRANT APPLICATIONS.] 
 11.19     Subdivision 1.  [APPLICATIONS REQUIRED.] An organization 
 11.20  seeking federal or state grant money under sections 124D.39 to 
 11.21  124D.44 shall prepare and submit to the commission and, 
 11.22  beginning January 1, 1997, the council an application that meets 
 11.23  the requirements of this section.  The commission and, beginning 
 11.24  January 1, 1997, the council must develop, and the applying 
 11.25  organizations must comply with, the form and manner of the 
 11.26  application. 
 11.27     Subd. 2.  [APPLICATION CONTENT.] An applicant on its 
 11.28  application must: 
 11.29     (1) propose a program to provide participants the 
 11.30  opportunity to perform community service to meet specific unmet 
 11.31  community needs, and participate in classroom, work-based, and 
 11.32  service-learning; 
 11.33     (2) assess the community's unmet educational, human, 
 11.34  environmental, and public safety needs, the resources and 
 11.35  programs available for meeting those needs, and how young people 
 11.36  participated in assessing community needs; 
 12.1      (3) describe the educational component of the program, 
 12.2   including classroom hours per week, classroom time for 
 12.3   participants to reflect on the program experience, and 
 12.4   anticipated academic outcomes related to the service experience; 
 12.5      (4) describe the work to be performed, the ratio of youth 
 12.6   participants to crew leaders and mentors, and the expectations 
 12.7   and qualifications for crew leaders and mentors; 
 12.8      (5) describe local funds or resources available to meet the 
 12.9   match requirements of section 124D.44; 
 12.10     (6) describe any funds available for the program from 
 12.11  sources other than the requested grant; 
 12.12     (7) describe any agreements with local businesses to 
 12.13  provide participants with work-learning opportunities and 
 12.14  mentors; 
 12.15     (8) describe any agreement with local post-secondary 
 12.16  educational institutions to offer participants course credits 
 12.17  for their community service-learning experience; 
 12.18     (9) describe any agreement with a local high school or an 
 12.19  alternative learning center to provide remedial education, 
 12.20  credit for community service work and work-based learning, or 
 12.21  graduate equivalency degrees; 
 12.22     (10) describe any pay for service or other program delivery 
 12.23  mechanism that will provide reimbursement for benefits conferred 
 12.24  or recover costs of services participants perform; 
 12.25     (11) describe how local resources will be used to provide 
 12.26  support and assistance for participants to encourage them to 
 12.27  continue with the program, fulfill the terms of the contract, 
 12.28  and remain eligible for any postservice benefit; 
 12.29     (12) describe the arbitration mechanism for dispute 
 12.30  resolution required under section 124D.42, subdivision 2; 
 12.31     (13) describe involvement of community leaders in 
 12.32  developing broad-based support for the program; 
 12.33     (14) describe the consultation and sign-off process to be 
 12.34  used with any local labor organization representing employees in 
 12.35  the area engaged in work similar to that proposed for the 
 12.36  program to ensure that no current employees or available 
 13.1   employment positions will be displaced by program participants; 
 13.2      (15) certify to the commission and, beginning January 1, 
 13.3   1997, the council, and to any certified bargaining 
 13.4   representatives representing employees of the applying 
 13.5   organization that the project will not decrease employment 
 13.6   opportunities that would be available without the project; will 
 13.7   not displace current employees including any partial 
 13.8   displacement in the form of reduced hours of work other than 
 13.9   overtime, wages, employment benefits, or regular seasonal work; 
 13.10  will not impair existing labor agreements; and will not result 
 13.11  in the substitution of project funding for preexisting funds or 
 13.12  sources of funds for ongoing work; 
 13.13     (16) describe the length of the required service period, 
 13.14  which may not be less than six months or more than two years, a 
 13.15  method to incorporate a participant's readiness to advance or 
 13.16  need for postservice financial assistance into individual 
 13.17  service requirements, and any opportunity for participating part 
 13.18  time or in another program; 
 13.19     (17) describe a program evaluation plan that contains 
 13.20  cost-effectiveness measures, measures of participant success 
 13.21  including educational accomplishments, job placements, community 
 13.22  contributions, and ongoing volunteer activities, outcome 
 13.23  measures based on a preprogram and postprogram survey of 
 13.24  community rates of arrest, incarceration, teenage pregnancy, and 
 13.25  other indicators of youth in trouble, and a list of local 
 13.26  resources dedicated to reducing these rates; 
 13.27     (18) describe a three-year financial plan for maintaining 
 13.28  the program; 
 13.29     (19) describe the role of local youth in developing all 
 13.30  aspects of the grant proposal; and 
 13.31     (20) describe the process by which the local private 
 13.32  industry council participated in, and reviewed the grant 
 13.33  application. 
 13.34     Sec. 23.  Minnesota Statutes 1998, section 124D.42, 
 13.35  subdivision 4, is amended to read: 
 13.36     Subd. 4.  [USES OF POSTSERVICE BENEFITS.] (a) A postservice 
 14.1   benefit for a participant provided under subdivision 3, 
 14.2   paragraph (a), (b), or (c), must be available for seven years 
 14.3   after completing the program and may only be used for: 
 14.4      (1) paying a student loan; 
 14.5      (2) costs of attending an institution of higher education; 
 14.6   or 
 14.7      (3) expenses incurred by a student in an approved youth 
 14.8   apprenticeship program under sections 124D.46 to 124D.49 or in a 
 14.9   registered apprenticeship program approved by the department of 
 14.10  labor and industry. 
 14.11  Financial assistance provided under this subdivision must be in 
 14.12  the form of vendor payments whenever possible.  Any postservice 
 14.13  benefits provided by federal funds or vouchers may be used as a 
 14.14  downpayment on, or closing costs for, purchasing a first home. 
 14.15     (b) Postservice benefits are to be used to develop skills 
 14.16  required in occupations where numbers of jobs are likely to 
 14.17  increase.  The commission, in consultation with the workforce 
 14.18  development council, and beginning January 1, 1997, the 
 14.19  workforce development council, must determine how the benefits 
 14.20  may be used in order to best prepare participants with skills 
 14.21  that build on their service-learning and equip them for 
 14.22  meaningful employment. 
 14.23     (c) The postservice benefit must not be included in 
 14.24  determining financial need when establishing eligibility or 
 14.25  award amounts for financial assistance programs under chapter 
 14.26  136A. 
 14.27     Sec. 24.  Minnesota Statutes 1998, section 124D.42, 
 14.28  subdivision 6, is amended to read: 
 14.29     Subd. 6.  [PROGRAM TRAINING.] (a) The commission and, 
 14.30  beginning January 1, 1997, the council must, within available 
 14.31  resources, ensure an opportunity for each participant to have 
 14.32  three weeks of training in a residential setting.  If offered, 
 14.33  each training session must: 
 14.34     (1) orient each participant in the nature, philosophy, and 
 14.35  purpose of the program; 
 14.36     (2) build an ethic of community service through general 
 15.1   community service training; and 
 15.2      (3) provide additional training as it determines necessary. 
 15.3      (b) Each grantee organization shall also train participants 
 15.4   in skills relevant to the community service opportunity. 
 15.5      Sec. 25.  Minnesota Statutes 1998, section 124D.42, 
 15.6   subdivision 7, is amended to read: 
 15.7      Subd. 7.  [TRAINING AND EDUCATION REQUIREMENTS.] Each 
 15.8   grantee organization must assess the educational level of each 
 15.9   entering participant.  Each grantee shall work to enhance the 
 15.10  educational skills of each participant.  The commission and, 
 15.11  beginning January 1, 1997, the council may coordinate or 
 15.12  contract with educational institutions or other providers for 
 15.13  educational services and evaluation.  All grantees shall give 
 15.14  priority to educating and training participants who do not have 
 15.15  a high school diploma or its equivalent, or who cannot afford 
 15.16  post-secondary training and education. 
 15.17     Sec. 26.  Minnesota Statutes 1998, section 124D.43, is 
 15.18  amended to read: 
 15.19     124D.43 [PRIORITY GIVEN TO ELIGIBLE ORGANIZATION MEETING 
 15.20  SPECIFIC GOALS.] 
 15.21     The commission and, beginning January 1, 1997, the council 
 15.22  must give priority to an eligible organization proposing a 
 15.23  program that meets the goals of sections 124D.39 to 124D.42, and 
 15.24  that: 
 15.25     (1) involves youth in a meaningful way in all stages of the 
 15.26  program, including assessing community needs, preparing the 
 15.27  application, and assuming postservice leadership and mentoring 
 15.28  responsibilities; 
 15.29     (2) serves a community with significant unmet needs; 
 15.30     (3) provides an approach that is most likely to reduce 
 15.31  arrest rates, incarceration rates, teenage pregnancy, and other 
 15.32  indicators of troubled youth; 
 15.33     (4) builds linkages with existing, successful programs; and 
 15.34     (5) can be operational quickly. 
 15.35     Sec. 27.  Minnesota Statutes 1998, section 124D.45, 
 15.36  subdivision 1, is amended to read: 
 16.1      Subdivision 1.  [GRANTEE ORGANIZATIONS.] Each grantee 
 16.2   organization shall report to the commission and, beginning 
 16.3   January 1, 1997, the council at the time and on the matters 
 16.4   requested by the commission and, beginning January 1, 1997, the 
 16.5   council. 
 16.6      Sec. 28.  Minnesota Statutes 1998, section 124D.45, 
 16.7   subdivision 2, is amended to read: 
 16.8      Subd. 2.  [INTERIM REPORT.] The commission and, beginning 
 16.9   January 1, 1997, the council must report semiannually to the 
 16.10  legislature with interim recommendations to change the program. 
 16.11     Sec. 29.  Minnesota Statutes 1998, section 124D.454, 
 16.12  subdivision 8, is amended to read: 
 16.13     Subd. 8.  [USE OF AID.] The aid provided pursuant to under 
 16.14  this section shall be paid only for services rendered as 
 16.15  designated in subdivision 2 or for the costs designated in 
 16.16  subdivision 3 which are incurred in according to this section 
 16.17  for school-to-work programs for children with a disability which 
 16.18  are approved by the commissioner of children, families, and 
 16.19  learning and operated in accordance with rules promulgated by 
 16.20  the state board.  These rules shall be subject to the 
 16.21  restrictions provided in section 124D.453, subdivision 6.  The 
 16.22  procedure for application for approval of these programs shall 
 16.23  be as provided in section 125A.75, subdivisions 4 and 6, and the 
 16.24  application review process shall be conducted by the office of 
 16.25  lifework development in the department. 
 16.26     Sec. 30.  Minnesota Statutes 1998, section 124D.53, 
 16.27  subdivision 2, is amended to read: 
 16.28     Subd. 2.  [PROGRAMS FUNDED.] Adult basic education programs 
 16.29  established under section 124D.52 and approved by the 
 16.30  commissioner are eligible for revenue aid under this section. 
 16.31     Sec. 31.  Minnesota Statutes 1998, section 124D.61, is 
 16.32  amended to read: 
 16.33     124D.61 [GENERAL REQUIREMENTS FOR PROGRAMS.] 
 16.34     A district which receives aid pursuant to section 124.273 
 16.35  124D.65 must comply with the following program requirements: 
 16.36     (1) to the extent possible, the district must avoid 
 17.1   isolating children of limited English proficiency for a 
 17.2   substantial part of the school day; and 
 17.3      (2) in predominantly nonverbal subjects, such as art, 
 17.4   music, and physical education, pupils of limited English 
 17.5   proficiency shall be permitted to participate fully and on an 
 17.6   equal basis with their contemporaries in public school classes 
 17.7   provided for these subjects.  To the extent possible, the 
 17.8   district must assure to pupils enrolled in a program for limited 
 17.9   English proficient students an equal and meaningful opportunity 
 17.10  to participate fully with other pupils in all extracurricular 
 17.11  activities. 
 17.12     Sec. 32.  Minnesota Statutes 1998, section 124D.81, 
 17.13  subdivision 1, is amended to read: 
 17.14     Subdivision 1.  [GRANTS; PROCEDURES.] Each fiscal year the 
 17.15  state board of education must make grants to no fewer than six 
 17.16  American Indian language and culture education programs.  At 
 17.17  least three programs must be in urban areas and at least three 
 17.18  must be on or near reservations.  The board of a local district, 
 17.19  a participating school or a group of boards may develop a 
 17.20  proposal for grants in support of American Indian language and 
 17.21  culture education programs.  Proposals may provide for contracts 
 17.22  for the provision of program components by nonsectarian 
 17.23  nonpublic, community, tribal, or alternative schools.  The 
 17.24  commissioner shall prescribe the form and manner of application 
 17.25  for grants, and no grant shall be made for a proposal not 
 17.26  complying with the requirements of sections 126.45 124D.71 to 
 17.27  126.55 124D.82.  The state board must submit all proposals to 
 17.28  the state advisory task force on American Indian language and 
 17.29  culture education programs for its recommendations concerning 
 17.30  approval, modification, or disapproval and the amounts of grants 
 17.31  to approved programs. 
 17.32     Sec. 33.  Minnesota Statutes 1998, section 124D.83, 
 17.33  subdivision 2, is amended to read: 
 17.34     Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
 17.35  tribal contract or grant school that is located on a reservation 
 17.36  within the state and that complies with the requirements in 
 18.1   subdivision 1 is eligible to receive tribal contract or grant 
 18.2   school aid.  The amount of aid is derived by: 
 18.3      (1) multiplying the formula allowance under section 
 18.4   126C.10, subdivision 2, less $170, times the difference between 
 18.5   (i) the resident pupil units as defined in section 124A.02 
 18.6   126C.05, subdivision 15 6, in average daily membership, 
 18.7   excluding section 126C.05, subdivision 13, and (ii) the number 
 18.8   of pupils for the current school year, weighted according to 
 18.9   section 126C.05, subdivision 1, receiving benefits under section 
 18.10  123B.42 or 123B.44 or for which the school is receiving 
 18.11  reimbursement under section 124D.69; 
 18.12     (2) adding to the result in clause (1) an amount equal to 
 18.13  the product of the formula allowance under section 126C.10, 
 18.14  subdivision 2, less $300 times the tribal contract compensation 
 18.15  revenue pupil units; 
 18.16     (3) subtracting from the result in clause (2) the amount of 
 18.17  money allotted to the school by the federal government through 
 18.18  Indian School Equalization Program of the Bureau of Indian 
 18.19  Affairs, according to Code of Federal Regulations, title 25, 
 18.20  part 39, subparts A to E, for the basic program as defined by 
 18.21  section 39.11, paragraph (b), for the base rate as applied to 
 18.22  kindergarten through twelfth grade, excluding small school 
 18.23  adjustments and additional weighting, but not money allotted 
 18.24  through subparts F to L for contingency funds, school board 
 18.25  training, student training, interim maintenance and minor 
 18.26  repair, interim administration cost, prekindergarten, and 
 18.27  operation and maintenance, and the amount of money that is 
 18.28  received according to section 124D.69; 
 18.29     (4) dividing the result in clause (3) by the sum of the 
 18.30  resident pupil units in average daily membership, excluding 
 18.31  section 126C.05, subdivision 13, plus the tribal contract 
 18.32  compensation revenue pupil units; and 
 18.33     (5) multiplying the sum of the resident pupil units, 
 18.34  including section 126C.05, subdivision 13, in average daily 
 18.35  membership plus the tribal contract compensation revenue pupil 
 18.36  units by the lesser of $1,500 or the result in clause (4). 
 19.1      Sec. 34.  Minnesota Statutes 1998, section 124D.895, is 
 19.2   amended to read: 
 19.3      124D.895 [PARENTAL INVOLVEMENT PROGRAMS.] 
 19.4      Subdivision 1.  [PROGRAM GOALS.] The department, in 
 19.5   consultation with the state curriculum advisory committee, must 
 19.6   develop guidelines and model plans for parental involvement 
 19.7   programs that will: 
 19.8      (1) engage the interests and talents of parents or 
 19.9   guardians in recognizing and meeting the emotional, 
 19.10  intellectual, and physical needs of their school-age children; 
 19.11     (2) promote healthy self-concepts among parents or 
 19.12  guardians and other family members; 
 19.13     (3) offer parents or guardians a chance to share and learn 
 19.14  about educational skills, techniques, and ideas; 
 19.15     (4) provide creative learning experiences for parents or 
 19.16  guardians and their school-age children, including involvement 
 19.17  from parents or guardians of color; 
 19.18     (5) encourage parents to actively participate in their 
 19.19  district's curriculum advisory committee under section 
 19.20  126.666 120B.11 in order to assist the school board in improving 
 19.21  children's education programs; and 
 19.22     (6) encourage parents to help in promoting school 
 19.23  desegregation/integration. 
 19.24     Subd. 2.  [PLAN CONTENTS.] Model plans for a parental 
 19.25  involvement program must include at least the following: 
 19.26     (1) program goals; 
 19.27     (2) means for achieving program goals; 
 19.28     (3) methods for informing parents or guardians, in a timely 
 19.29  way, about the program; 
 19.30     (4) strategies for ensuring the full participation of 
 19.31  parents or guardians, including those parents or guardians who 
 19.32  lack literacy skills or whose native language is not English, 
 19.33  including involvement from parents or guardians of color; 
 19.34     (5) procedures for coordinating the program with 
 19.35  kindergarten through grade 12 curriculum, with parental 
 19.36  involvement programs currently available in the community, with 
 20.1   the PER process under sections 126.661 120B.10 to 
 20.2   126.67 120B.11, and with other education facilities located in 
 20.3   the community; 
 20.4      (6) strategies for training teachers and other school staff 
 20.5   to work effectively with parents and guardians; 
 20.6      (7) procedures for parents or guardians and educators to 
 20.7   evaluate and report progress toward program goals; and 
 20.8      (8) a mechanism for convening a local community advisory 
 20.9   committee composed primarily of parents or guardians to advise a 
 20.10  district on implementing a parental involvement program. 
 20.11     Subd. 3.  [PLAN ACTIVITIES.] Activities contained in the 
 20.12  model plans must include: 
 20.13     (1) educational opportunities for families that enhance 
 20.14  children's learning development; 
 20.15     (2) educational programs for parents or guardians on 
 20.16  families' educational responsibilities and resources; 
 20.17     (3) the hiring, training, and use of parental involvement 
 20.18  liaison workers to coordinate family involvement activities and 
 20.19  to foster communication among families, educators, and students; 
 20.20     (4) curriculum materials and assistance in implementing 
 20.21  home and community-based learning activities that reinforce and 
 20.22  extend classroom instruction and student motivation; 
 20.23     (5) technical assistance, including training to design and 
 20.24  carry out family involvement programs; 
 20.25     (6) parent resource centers; 
 20.26     (7) parent training programs and reasonable and necessary 
 20.27  expenditures associated with parents' attendance at training 
 20.28  sessions; 
 20.29     (8) reports to parents on children's progress; 
 20.30     (9) use of parents as classroom volunteers, or as 
 20.31  volunteers in before and after school programs for school-age 
 20.32  children, tutors, and aides; 
 20.33     (10) soliciting parents' suggestions in planning, 
 20.34  developing, and implementing school programs; 
 20.35     (11) educational programs and opportunities for parents or 
 20.36  guardians that are multicultural, gender fair, and disability 
 21.1   sensitive; 
 21.2      (12) involvement in a district's curriculum advisory 
 21.3   committee or a school building team under section 126.666 
 21.4   120B.11; and 
 21.5      (13) opportunities for parent involvement in developing, 
 21.6   implementing, or evaluating school and district 
 21.7   desegregation/integration plans. 
 21.8      Sec. 35.  Minnesota Statutes 1998, section 124D.896, is 
 21.9   amended to read: 
 21.10     124D.896 [DESEGREGATION/INTEGRATION AND INCLUSIVE EDUCATION 
 21.11  RULES.] 
 21.12     (a) By January 10, 1999, the commissioner shall make 
 21.13  propose rules relating to desegregation/integration and 
 21.14  inclusive education. 
 21.15     (b) In adopting a rule related to school 
 21.16  desegregation/integration, the commissioner shall address the 
 21.17  need for equal educational opportunities for all students and 
 21.18  racial balance as defined by the commissioner. 
 21.19     Sec. 36.  Minnesota Statutes 1999 Supplement, section 
 21.20  125A.79, subdivision 1, is amended to read: 
 21.21     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 21.22  section, the definitions in this subdivision apply. 
 21.23     (a) "Unreimbursed special education cost" means the sum of 
 21.24  the following: 
 21.25     (1) expenditures for teachers' salaries, contracted 
 21.26  services, supplies, equipment, and transportation services 
 21.27  eligible for revenue under section 125A.76; plus 
 21.28     (2) expenditures for tuition bills received under sections 
 21.29  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 21.30  under sections section 125A.76, subdivision 2, and 124.3202, 
 21.31  subdivision 1; minus 
 21.32     (3) revenue for teachers' salaries, contracted services, 
 21.33  supplies, and equipment under sections 124.3202 and 124A.76 
 21.34  section 125A.76; minus 
 21.35     (4) tuition receipts under sections 125A.03 to 125A.24 and 
 21.36  125A.65 for services eligible for revenue under sections 
 22.1   124.3202, subdivision 1, and 124A.76 section 125A.76, 
 22.2   subdivision 2. 
 22.3      (b) "General revenue" means for fiscal year 1996, the sum 
 22.4   of the general education revenue according to section 126C.10, 
 22.5   subdivision 1, as adjusted according to section 127A.47, 
 22.6   subdivision 7, plus the total referendum revenue according to 
 22.7   section 126C.17, subdivision 4.  For fiscal years 1997 and 
 22.8   later, "general revenue" means the sum of the general education 
 22.9   revenue according to section 126C.10, subdivision 1, as adjusted 
 22.10  according to section 127A.47, subdivisions 7 and 8, plus the 
 22.11  total referendum revenue minus transportation sparsity revenue 
 22.12  minus total operating capital revenue.  
 22.13     (c) "Average daily membership" has the meaning given it in 
 22.14  section 126C.05. 
 22.15     (d) "Program growth factor" means 1.044 for fiscal year 
 22.16  2002 and 1.02 for fiscal year 2003 and later. 
 22.17     Sec. 37.  Minnesota Statutes 1999 Supplement, section 
 22.18  126C.10, subdivision 9, is amended to read: 
 22.19     Subd. 9.  [SUPPLEMENTAL REVENUE.] (a) A district's 
 22.20  supplemental revenue allowance for fiscal year 1994 and later 
 22.21  fiscal years equals the district's supplemental revenue for 
 22.22  fiscal year 1993 divided by the district's 1992-1993 resident 
 22.23  pupil units. 
 22.24     (b) A district's supplemental revenue allowance is reduced 
 22.25  for fiscal year 1995 and later according to subdivision 12. 
 22.26     (c) A district's supplemental revenue equals the 
 22.27  supplemental revenue allowance, if any, times its adjusted 
 22.28  marginal cost pupil units for that year.  
 22.29     (d) A district may cancel its supplemental revenue by 
 22.30  notifying the commissioner of education prior to June 30, 1994.  
 22.31  A district that is reorganizing under section 122A.35 123A.35, 
 22.32  123A.46, or 123A.48 may cancel its supplemental revenue by 
 22.33  notifying the commissioner of children, families, and learning 
 22.34  before July 1 of the year of the reorganization.  If a district 
 22.35  cancels its supplemental revenue according to this paragraph, 
 22.36  its supplemental revenue allowance for fiscal year 1993 for 
 23.1   purposes of subdivision 12 and section 124A.03, subdivision 3b, 
 23.2   equals zero. 
 23.3      Sec. 38.  Minnesota Statutes 1998, section 126C.14, is 
 23.4   amended to read: 
 23.5      126C.14 [GENERAL EDUCATION LEVY EQUITY.] 
 23.6      If a district's general education levy is determined 
 23.7   according to section 126C.13, subdivision 3, an amount must be 
 23.8   deducted from state aid authorized in this chapter and chapters 
 23.9   120B, 122A, 123A, 123B, 124B, 124D, 125A, and 127A, receivable 
 23.10  for the same school year, and from other state payments 
 23.11  receivable for the same school year authorized in chapter 273.  
 23.12  The aid in section 124D.111 must not be reduced. 
 23.13     The amount of the deduction equals the difference between: 
 23.14     (1) the general education tax rate, according to section 
 23.15  126C.13, times the district's adjusted net tax capacity used to 
 23.16  determine the general education aid for the same school year; 
 23.17  and 
 23.18     (2) the district's general education revenue, excluding 
 23.19  transition revenue and supplemental revenue, for the same school 
 23.20  year, according to section 126C.10. 
 23.21     Sec. 39.  Minnesota Statutes 1999 Supplement, section 
 23.22  126C.15, subdivision 3, is amended to read: 
 23.23     Subd. 3.  [RECOMMENDATION.] A school site decision-making 
 23.24  team, as defined in section 123B.04, subdivision 3 2, paragraph 
 23.25  (a), or the instruction and curriculum advisory committee under 
 23.26  section 120B.11, if the school has no school site decision team, 
 23.27  shall recommend how the compensatory education revenue will be 
 23.28  used to carry out the purpose of this section. 
 23.29     Sec. 40.  Minnesota Statutes 1998, section 126C.16, 
 23.30  subdivision 1, is amended to read: 
 23.31     Subdivision 1.  [REVENUE CONVERSION.] Except as provided 
 23.32  under subdivision 3, the referendum authority under section 
 23.33  126C.17 and the levy authority under section 124.912, 
 23.34  subdivisions 2 and 3, of a district must be converted by the 
 23.35  department according to this section. 
 23.36     Sec. 41.  Minnesota Statutes 1998, section 126C.16, 
 24.1   subdivision 2, is amended to read: 
 24.2      Subd. 2.  [RATE ADJUSTMENT.] The department must adjust a 
 24.3   district's referendum authority for a referendum approved before 
 24.4   July 1, 1991, excluding authority based on a dollar amount, and 
 24.5   the levy authority under section 124.912, subdivisions 2 and 3, 
 24.6   by multiplying the sum of the rates authorized by a district 
 24.7   under section 126C.17 and the rates in section 124.912, 
 24.8   subdivisions 2 and 3, by the ratio determined under subdivision 
 24.9   2 for the assessment year for which the revenue is 
 24.10  attributable.  The adjusted rates for assessment year 1993 apply 
 24.11  to later years for which the revenue is authorized. 
 24.12     Sec. 42.  Minnesota Statutes 1998, section 126C.22, 
 24.13  subdivision 4, is amended to read: 
 24.14     Subd. 4.  [REVENUE USES.] (a) A district must place its 
 24.15  district cooperation revenue in a reserved account and may only 
 24.16  use the revenue to purchase goods and services from entities 
 24.17  formed for cooperative purposes or to otherwise provide 
 24.18  educational services in a cooperative manner. 
 24.19     (b) A district that was a member of an intermediate school 
 24.20  district organized pursuant to chapter 136D on July 1, 1996, 
 24.21  must place its district cooperation revenue in a reserved 
 24.22  account and must allocate a portion of the reserved revenue for 
 24.23  instructional services from entities formed for cooperative 
 24.24  services for special education programs and secondary vocational 
 24.25  programs.  The allocated amount is equal to the levy made 
 24.26  according to Minnesota Statutes 1993 Supplement, section 
 24.27  124.2727, subdivision 6, for taxes payable in 1994 divided by 
 24.28  the resident pupil units in the intermediate school district for 
 24.29  fiscal year 1995 times the number of resident pupil units in the 
 24.30  school district in 1995.  The district must use 5/11 of the 
 24.31  revenue for special education and 6/11 of the revenue for 
 24.32  secondary vocational education.  The district must demonstrate 
 24.33  that the revenue is being used to provide the full range of 
 24.34  special education and secondary vocational programs and services 
 24.35  available to each child served by the intermediate.  The 
 24.36  secondary vocational programs and service must meet the 
 25.1   requirements established in an articulation agreement developed 
 25.2   between the state board of education and the board of trustees 
 25.3   of the Minnesota state colleges and universities. 
 25.4      (c) A district that was not a member of an intermediate 
 25.5   district organized under chapter 136D on July 1, 1994, must 
 25.6   spend at least $9 per pupil unit of its district cooperation 
 25.7   revenue on secondary vocational programs. 
 25.8      Sec. 43.  Minnesota Statutes 1998, section 126C.41, 
 25.9   subdivision 1, is amended to read: 
 25.10     Subdivision 1.  [HEALTH INSURANCE.] (a) A district may levy 
 25.11  the amount necessary to make employer contributions for 
 25.12  insurance for retired employees under this subdivision.  
 25.13     (b) The school board of a joint vocational technical 
 25.14  district formed under the provisions formerly codified as 
 25.15  sections 136C.60 to 136C.69 and the school board of a school 
 25.16  district may provide employer-paid hospital, medical, and dental 
 25.17  benefits to a person who: 
 25.18     (1) is eligible for employer-paid insurance under 
 25.19  collective bargaining agreements or personnel plans in effect on 
 25.20  June 30, 1992; 
 25.21     (2) has at least 25 years of service credit in the public 
 25.22  pension plan of which the person is a member on the day before 
 25.23  retirement or, in the case of a teacher, has a total of at least 
 25.24  25 years of service credit in the teachers retirement 
 25.25  association, a first-class city teacher retirement fund, or any 
 25.26  combination of these; 
 25.27     (3) upon retirement is immediately eligible for a 
 25.28  retirement annuity; 
 25.29     (4) is at least 55 and not yet 65 years of age; and 
 25.30     (5) retires on or after May 15, 1992, and before July 21, 
 25.31  1992. 
 25.32     A school board paying insurance under this subdivision may 
 25.33  not exclude any eligible employees. 
 25.34     (c) An employee who is eligible both for the health 
 25.35  insurance benefit under this subdivision and for an early 
 25.36  retirement incentive under a collective bargaining agreement or 
 26.1   personnel plan established by the employer must select either 
 26.2   the early retirement incentive provided under the collective 
 26.3   bargaining agreement personnel plan or the incentive provided 
 26.4   under this subdivision, but may not receive both.  For purposes 
 26.5   of this subdivision, a person retires when the person terminates 
 26.6   active employment and applies for retirement benefits.  The 
 26.7   retired employee is eligible for single and dependent coverages 
 26.8   and employer payments to which the person was entitled 
 26.9   immediately before retirement, subject to any changes in 
 26.10  coverage and employer and employee payments through collective 
 26.11  bargaining or personnel plans, for employees in positions 
 26.12  equivalent to the position from which the employee retired.  The 
 26.13  retired employee is not eligible for employer-paid life 
 26.14  insurance.  Eligibility ceases when the retired employee attains 
 26.15  the age of 65, or when the employee chooses not to receive the 
 26.16  retirement benefits for which the employee has applied, or when 
 26.17  the employee is eligible for employer-paid health insurance from 
 26.18  a new employer.  Coverages must be coordinated with relevant 
 26.19  health insurance benefits provided through the federally 
 26.20  sponsored Medicare program.  
 26.21     (d) Unilateral implementation of this section by a public 
 26.22  employer is not an unfair labor practice for purposes of chapter 
 26.23  179A.  The authority provided in this subdivision for an 
 26.24  employer to pay health insurance costs for certain retired 
 26.25  employees is not subject to the limits in section 179A.20, 
 26.26  subdivision 2a. 
 26.27     (e) If a school district levies according to this 
 26.28  subdivision, it may not also levy according to section 123A.73, 
 26.29  subdivision 12, for eligible employees. 
 26.30     Sec. 44.  Minnesota Statutes 1999 Supplement, section 
 26.31  126C.44, is amended to read: 
 26.32     126C.44 [CRIME-RELATED COSTS LEVY.] 
 26.33     Each district may make a levy on all taxable property 
 26.34  located within the district for the purposes specified in this 
 26.35  subdivision.  The maximum amount which may be levied for all 
 26.36  costs under this subdivision shall be equal to $1.50 multiplied 
 27.1   by the population of the school district.  For purposes of this 
 27.2   subdivision, "population" of the school district means the same 
 27.3   as contained in section 275.14.  The proceeds of the levy must 
 27.4   be used for directly funding the following purposes or for 
 27.5   reimbursing the cities and counties who contract with the 
 27.6   district for the following purposes:  (1) to pay the costs 
 27.7   incurred for the salaries, benefits, and transportation costs of 
 27.8   peace officers and sheriffs for liaison services in the 
 27.9   district's middle and secondary schools; (2) to pay the costs 
 27.10  for a drug abuse prevention program as defined in Minnesota 
 27.11  Statutes 1991 Supplement, section 609.101, subdivision 3, 
 27.12  paragraph (f) (e), in the elementary schools; (3) to pay the 
 27.13  costs for a gang resistance education training curriculum in the 
 27.14  middle schools; or (4) to pay the costs for other crime 
 27.15  prevention and drug abuse and violence prevention measures taken 
 27.16  by the school district.  The district must initially attempt to 
 27.17  contract for services to be provided by peace officers or 
 27.18  sheriffs with the police department of each city or the 
 27.19  sheriff's department of the county within the district 
 27.20  containing the school receiving the services.  If a local police 
 27.21  department or a county sheriff's department does not wish to 
 27.22  provide the necessary services, the district may contract for 
 27.23  these services with any other police or sheriff's department 
 27.24  located entirely or partially within the school district's 
 27.25  boundaries.  The levy authorized under this subdivision is not 
 27.26  included in determining the school district's levy limitations. 
 27.27     Sec. 45.  Minnesota Statutes 1998, section 126C.48, 
 27.28  subdivision 2, is amended to read: 
 27.29     Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 
 27.30  each year each district must notify the commissioner of the 
 27.31  proposed levies in compliance with the levy limitations of this 
 27.32  chapter and chapters 120B, 122A, 123A, 123B, 124B, 124D, 125A, 
 27.33  127A, and 136D.  By January 15 of each year each district must 
 27.34  notify the commissioner of the final levies certified.  The 
 27.35  commissioner shall prescribe the form of these notifications and 
 27.36  may request any additional information necessary to compute 
 28.1   certified levy amounts. 
 28.2      Sec. 46.  Minnesota Statutes 1998, section 126C.48, 
 28.3   subdivision 5, is amended to read: 
 28.4      Subd. 5.  [ESTIMATES.] The computation of levy limitations 
 28.5   pursuant to this chapter and chapters 120B, 122A, 123A, 
 28.6   123B, 124B, 124D, 125A, 127A, 136C, and 136D shall be based on 
 28.7   estimates where necessary.  If as a result of using estimates 
 28.8   for these computations the amount of any levy is different from 
 28.9   the amount which could actually have been levied if actual data 
 28.10  had been available, levy limitations in the first year when the 
 28.11  actual data is known shall be adjusted to reflect for this 
 28.12  difference.  The amount of any adjustment to levy limitations 
 28.13  pursuant to this subdivision shall be recognized as revenue in 
 28.14  the school year when the levy for which the levy limitation is 
 28.15  so adjusted is recognized as revenue. 
 28.16     Sec. 47.  Minnesota Statutes 1998, section 127A.41, 
 28.17  subdivision 1, is amended to read: 
 28.18     Subdivision 1.  [COMMISSIONER DUTIES.] The commissioner 
 28.19  shall supervise distribution of school aids and grants in 
 28.20  accordance with law.  It The commissioner may make rules 
 28.21  consistent with law for the distribution to enable districts to 
 28.22  perform efficiently the services required by law and further 
 28.23  education in the state, including reasonable requirements for 
 28.24  the reports and accounts to it as will assure accurate and 
 28.25  lawful apportionment of aids.  State and federal aids and 
 28.26  discretionary or entitlement grants distributed by the 
 28.27  commissioner shall not be subject to the contract approval 
 28.28  procedures of the commissioner of administration or to chapter 
 28.29  16A, 16B, or 16C.  The commissioner shall adopt internal 
 28.30  procedures for administration and monitoring of aids and grants. 
 28.31     Sec. 48.  Minnesota Statutes 1999 Supplement, section 
 28.32  127A.45, subdivision 13, is amended to read: 
 28.33     Subd. 13.  [AID PAYMENT PERCENTAGE.] Except as provided in 
 28.34  subdivisions 11, 12, 12a, and 14, each fiscal year, all 
 28.35  education aids and credits in this chapter and chapters 120A, 
 28.36  120B, 121A, 122A, 123A, 123B, 124B, 124D, 125A, 125B, 126C, 134, 
 29.1   and section 273.1392, shall be paid at 90 percent of the 
 29.2   estimated entitlement during the fiscal year of the 
 29.3   entitlement.  The final adjustment payment, according to 
 29.4   subdivision 9, must be the amount of the actual entitlement, 
 29.5   after adjustment for actual data, minus the payments made during 
 29.6   the fiscal year of the entitlement. 
 29.7      Sec. 49.  Laws 1998, chapter 398, article 5, section 50, 
 29.8   subdivision 1, is amended to read: 
 29.9      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A task force on 
 29.10  prekindergarten through grade 12 education governance structure 
 29.11  is established to examine the transitional issues related to the 
 29.12  repeal of the state board of education under section 39, 
 29.13  paragraph (b) 56. 
 29.14     Sec. 50.  [REPEALERS WITHOUT EFFECT.] 
 29.15     Subdivision 1.  [EFFECT.] (a) The repeal of Minnesota 
 29.16  Statutes 1994, section 121.703, by Laws 1995, chapter 131, 
 29.17  section 3, subdivision 3, with an effective date of July 1, 
 29.18  1997, is without effect and Minnesota Statutes 1996, section 
 29.19  121.703, as amended by Laws 1997, First Special Session chapter 
 29.20  4, article 3, section 10, remains in effect after June 30, 1997. 
 29.21     (b) The repeal of Minnesota Statutes 1996, section 121.11, 
 29.22  subdivision 7d, by Laws 1998, chapter 398, article 6, section 
 29.23  38, paragraph (b), with an effective date of January 10, 1999, 
 29.24  is without effect and Minnesota Statutes 1996, section 121.11, 
 29.25  subdivision 7d, as amended by Laws 1998, chapter 397, article 4, 
 29.26  section 51, and chapter 398, article 5, section 7, remains in 
 29.27  effect after January 9, 1999.  Any rules adopted under section 
 29.28  121.11, subdivision 7d, remain in effect until otherwise 
 29.29  provided by law or rule. 
 29.30     Subd. 2.  [REVISOR INSTRUCTION.] In the next and subsequent 
 29.31  editions of Minnesota Statutes, the revisor of statutes shall 
 29.32  renumber section 121.703 as 124D.385.  The revisor shall also 
 29.33  make necessary cross-reference changes consistent with the 
 29.34  renumbering. 
 29.35     Subd. 3.  [EFFECTIVE DATE.] Subdivision 1, paragraph (a), 
 29.36  is effective retroactive to July 1, 1997.  Subdivision 1, 
 30.1   paragraph (b), is effective retroactive to July 1, 1998. 
 30.2      Sec. 51.  [REPEALER.] 
 30.3      (a) Minnesota Statutes 1998, sections 124D.128, subdivision 
 30.4   4; 124D.38, subdivision 10; and 124D.45, subdivision 3, are 
 30.5   repealed. 
 30.6      (b) Laws 1997, chapter 192, section 19, is repealed. 
 30.7      (c) Laws 1995, First Special Session chapter 3, article 5, 
 30.8   section 9, is repealed. 
 30.9      Sec. 52.  [EFFECTIVE DATE.] 
 30.10     Section 43 is effective retroactive to July 1, 1995.  
 30.11  Section 35 is effective retroactive to January 1, 1999.